PKP Iyer, Editor, Excellone Technologies ( http://www.excellone.com ) and Java Development India ( http://www.javadevelopmentindia.com ). Our company offer Technology solutions using Java such as SPRING, J2EE, J2ME for Software Application Development and IT Outsourcing services from our offshore software development centre in India.
Availing credit is quite easy. But to manage the credit and avoid falling into a debt trap is not that easy.If you avail a credit facility, for a genuine need and utilise it for that very purpose, then you are on the right track. Diversion of funds availed under credit, is a dangerous practice. It is rather slippery terrain and you could land up neck deep in trouble. Here some important tips to avoid falling into a debt trap:
1.Avail Credit only if aboslutely necessary.
2.Read fine print and understand credit terms like rate of interest, repayment period and security details thoroughly.
3.Verify credit documentation. Never sign any blank documents.
4.Verify amounts and rates of interest in loan documents. Double check subordination of available collateral securities.
5.Find out about upfront charges like processing fees, documentation fees and other hidden charges.
6.Get a detailed sanction letter laying all the terms and conditions of the credit in black and white.
7.Never ever divert availed funds. Use it for the purpose availed
8.Make repayments as per schedule and ensure that these are accounted properly by the creditor.
9.Get periodical statements and verify the entries.
10.Renew credit facilities only if aboslutely necessary.
If you stick to these, then credit management could be as easy as child's play. If some thing goes wrong with your business venture and if repayments have been missed, then make a forthright approach to the credi-affording institution and put your cards on the table. Work out a repayment holiday. Infuse further nursing funds if necessary. Rebuild your venture from basics. If your dealings have been transparent, the creditor will help you tide over the crisis.
Manage your credit wisely.
- Related Articles
- Related Q&A
- Tips to Avoid Debt Trap
- Bad Credit Debt Consolidation Loan: Stop Before Your Credit Status Alarm You
- Bad Credit Debt Consolidation Loans: Path to a Perfect Credit Rating
- Bad Credit Debt Consolidation: The Way Out
- Bad Credit Debt Consolidation: Way Get Back to Credit
- Don't Get Caught In The Debt Trap
- A Solution of All Your Debt Trapped
- Bad Credit Debt Consolidation
How to Have a Happy New Year With Credit Card Debt
By: Jeslyn Jessy | 26/12/2009Pretty soon year 2010 will be here after the holidays. For people who are still knee deep in credit card debt, how do you have a happy new year?
Knowing the Don'ts For Debt Negotiation
By: Jeslyn Jessy | 26/12/2009Besides writing a debt settlement letter to your creditors or debt collectors, another way to communicate with them is through phone calls. If you think that you are better in verbal negotiation, you can start calling your creditors to bargain with them. Here are some important reminders you need to keep in mind. Make sure that you DO NOT take the following actions:
Will Your Debt Settlement Letter Be Rejected?
By: Jeslyn Jessy | 26/12/2009During financial hard times, many creditors start to accept debt settlement as they foresee that their debtors have lost the ability to pay back their outstanding. However, it is important for all the people in debt to understand the fact that not every settlement letter you send to your creditors will be accepted. No matter how good your writing skill is, there are circumstances where your proposal will be rejected. Let's take a closer look at the situations below:
What Happens to Your Credit Card Debt When You Die
By: Jeslyn Jessy | 26/12/2009Many people have the wrong assumption that once a person dies, it is a "full stop" to his or her credit card debt. In actual fact, it is not that simple. His or her family may have a hard time dealing with the debts after he or she passes away.
Hammering Out a Perfect Debt Settlement Letter
By: Jeslyn Jessy | 26/12/2009If you are working in the corporate world, producing a letter seems to be a very simple task for you. However, writing a legal binding letter is not as easy as you expect. For people who intend to negotiate with their creditors for debt reduction, it is indeed important for them to use the right techniques to hammer out a perfect proposal so that they are able to reduce their total debt at the maximum amount and at the same time, protect their credit score.
Overcoming Credit Card Debt Problems With New Year Plan
By: Jeslyn Jessy | 26/12/2009Most of the Americans have been hit hard by the current crisis and they are still drowned in deep credit card debt. If you are also one of the victims, what are the appropriate steps you should take? Regaining financial strength is a must.
Learn Why Credit Funding is a Major Problem
By: Colon Bolden | 25/12/2009You can't do anything to change the economy, but you can change whether you will be approved for a loan, and what interest rates banks will offer you. If you are having trouble getting a loan to use as start-up or expansion capital for your business, you are not alone.
Getting Out and Staying Out of Credit Card Debt
By: Ed Dearmin | 25/12/2009Credit card debt is a major cause of over one million bankruptcies each year. The reason is that many people get a credit card without researching and reading the fine print. By the time annual fees are added on, along with spending indiscriminately, payments are missed, which causes their balance to skyrocket.
The Rise of Broadband Internet Services
By: PKP IYER | 23/10/2008 | Intra-netBroadband Internet Services, have today caught on in the Indian Subcontinent.
Rfid-emerging Technology
By: PKP IYER | 20/10/2008 | EthicsRFID is going to invade everyday individual life in a big way.
Voice Professionals
By: PKP IYER | 11/10/2008 | Business IdeasThe career of the voice professional-How lucrative is it?
Why Customer Service
By: PKP IYER | 29/09/2008 | Business IdeasCustomer Services are the backbone of any service industry
Surviving Cancer- Mankind's Grim Ordeal
By: PKP IYER | 23/09/2008 | CancerCancer tops the list of killers, jumping ahead of air and road accidents.
Importance of Page Rank
By: PKP IYER | 22/09/2008 | Link PopularityPage rank of a website plays an important role in internet marketing
Broadband Internet Services
By: PKP IYER | 16/09/2008 | SoftwareThis article is an insight into the thrilling experience of internet surfing with the high-speed Broadband Internet Services
A Website for a Company
By: PKP IYER | 13/09/2008 | Public CompanyWebsite is a must for any company worth its name.